Marketing Essentials

Chapter 16: Using Math in Sales

Chapter Summaries

Section 16.1

• The types of sales transactions are cash sales, debit card sales, credit card sales, layaway sales, on-approval sales, and COD sales. You may also handle returns, exchanges, and allowances.
• A sales check can be generated by hand, machine, or computer. It serves as documentation of the transaction. The customer gets a copy as a receipt.
• Sales tax and shipping charges are normally added to the total price of the products sold.

Section 16.2

• All cash registers, including point-of-sale (POS) terminals, perform three functions: recording sales, storing cash and sales documents, and providing receipts.
• A Universal Product Code (UPC) identifies a product and its manufacturer. When scanned into a POS terminal, it can retrieve the correct price for the product and update inventory records.
• There are two ways to count change. With a POS system, give the customer the amount indicated by the POS terminal. Without a POS, announce the total amount of the sale and then count up to the amount tendered, giving the customer the smallest coins first and working up to the biggest bills.

Section 16.3

• To place an order, most companies prepare a purchase order. A purchase order includes the item number, quantity, description, unit, unit cost, and total (extension) for each item ordered. When filling an order, a vendor prepares an invoice. The invoice includes all of the information on a purchase order plus tax and shipping charges.
• Terms for delivery vary, but all are variations of free-on-board (FOB). The seller may pay all shipping charges, pay some, or pay nothing.